Posted on 11/16/2010 6:33:17 AM PST by WebFocus
John Adams once said in court, “Facts are stubborn things.”
If you can’t afford a house, you shouldn’t buy one.
Simple as that.
Apparently, there are a lot of people in America who cannot count.
Good on Charley.
How 'bout not showing us the victims? I don't care about any victims of anything. I'm so tired of hearing about this victim or that victim. F'em all.
ML/NJ
The other problem is that the bank has a fiduciary responsibility to the shareholders and depositors to NOT give loans to folks who can't pay it back. That is fraud, and it's been done on a scale that long ago should have had 'banker X charged under RICO' on every daily headline for the last couple of years.
Fraud on homeowner by way of insurance switch: Now It's Kickbacks Too (Force-Placed Insurance)
Fraud on homeowner by way of faked loan workouts: Heh, Look - It's Lootie The Bankster!
and: Gee The FRAUD In HAMP Is Coming Out?
fraud during the mortgage setup: Oh, It's Those E-Vile Borrowers! Oh Wait... It's Not?
Sure, there were some who took on more risk than they should. But that doesn't give the bank the right to screw them over again as they try to work it out. Nor does it excuse the bank from having lied to some at the start, nor does it excuse the bank from having sold the mortgage to more than one MBS setup.
Blaming the folks who bet wrong is a red-herring to cover up for the unbelievably huge fraud going on here.
http://www.businessinsider.com/michael-hudson-the-monster-2010-10
From what I can tell the banks were giving out loans they HOPED people would not be able to pay.
They were counting on housing prices rising and rising. Then if they could forclose a year or two later, they could the house for 20% profit, pocket the down payment and the payments made.
They thought they held all the cards, and broke the law by making these loans. What they din’t count on was crashing the market.
Well right now any adjustable rate loans that I see resetting, are dropping in rate quite a bit, so no go on that being a problem.
The victims will be the clueless homeowners who try to sell their homes only to find out their mortgage was securitized, the note was destroyed or lost, and title was clouded. When the prospective buyer is denied title insurance because former owner’s note can’t be found, then you, the clueless seller, might feel somewhat victimized as your home’s value has become obliterated.
If prices kept on rising, the owner could sell for a profit and pay off the loan! Ergo, no foreclosure.
pocket the down payment and the payments made.
The bank doesn't get the downpayment. The downpayment goes to the home seller.
You mean they were too stupid to read the contract before signing it? Lucky for them as interest rates have fallen. They got the lower rate to start with and now reset with an even lower rate! Yes, facts are stubborn things.
I stand corrected on the down payment.
Loan origination fees would have remained in the banks hands. I relised this error, but could not go back and edit.
My point is that in a rising market, forclosure was not a threat but a boon to the banks. It would have allowed more fees and profits, so they had no reason to follow the laws, and every reason not to.
If you cannot figure out what kind of mortgage you are applying for, you need to go back to school and learn how to count.
That goes for bankers as well. They won’t be forgotten.
Most of the loan origination fees would be paid out to the people processing the loans. Only a small part 'remains in the hands of the banks'.
My point is that in a rising market, forclosure was not a threat but a boon to the banks.
In a rising market, the home owner can sell for a profit and never go into foreclosure. There is no 'foreclosure boon' to the banks in a rising market.
I had a house that I could afford ...
... then my wife and I lost our jobs within 2 weeks of each other.
After almost a year of being unemployed, I got a job, and tried to negotiate with the bank ...
... they forced me into bankruptcy
After bankruptcy, I hired a lawyer to try to negotiate with the bank again to save the house ...
... they still refused to negotiate ...
... and the lawyer I hired was raided by the FBI because they were a scam.
Now, I find myself debt free and gainfully employed, but looked upon by some as a pariah because supposedly I did something wrong. I did not over-buy based on my then income. I did not try to walk away from my mortgage ... in fact, I went to the bank before I missed my first payment and tried to work with them. I did not intend to walk away from my debts ... but again, raising my interest rates to 31% and refusing to negotiate left me no choice. I did not want my house to go into foreclosure, but when told that I had to write the bank a check for $180,000 before they would negotiate with me ... I walked.
When it comes to personal finance and marriage, you never know what goes on behind closed doors.
Sounds like these two enjoyed spending money. Perhaps money they did not have?
Nice liberal take... Ever hear of the 1977 CRA? ACORN?? The banks played the hand they were dealt. You ought to check it out lefty.
Have a nice day!
Tsk, tsk. All that financial know how and no manners.
The fraud on the part of the banks is far deeper than you understand.
One of the tricks used was to have a fixed rate explained on the first few pages of the mortgage doc, but deep in the pile of papers was a bit saying it was an adjustable loan, all nicely in done up in impenetrable lawyer-ese. After the signing, the bank ripped off and discarded the top pages. Another trick that seems to have happened is to just discard the original docs and show up at the foreclosure hearing with new paper and robo-signed affadavits saying it matched the first set.
I think it was market-ticker.org that had the reference to the Ameriquest fraud, but I can't find it at the moment.
The larger fraud, by far, is on the part of the bankers. That the government was part and parcel of this fraud via the CRA doesn't let the banks off the hook.
I just find it funny that out-and-out fraud by the banks (and the govt) gets a pass on this forum by folks who want to lay primary blame on the merely gullible.
That can be hard to do when the bank lies to you about it up front with deceptive paperwork, or switches the paperwork after the fact.
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